Sui foundation denies $400 million insider token sales allegation as SUI hits ATH

The Sui Foundation has strongly refuted allegations of insider token sales amounting to $400 million, as the SUI token reaches a new all-time high. This denial comes in response to claims made by an on-chain analyst named Light, who raised concerns for the sudden surge in the price of SUI.

Light questioned whether SUI has shown a quarter of the potential of Solana as it now trades at a quarter of Solana’s valuation. The sleuth also highlighted that a large foundation wallet has sold $400 million in tokens throughout the coin’s surge.

“Secondly, and something I think few know — insiders (including what is likely a large foundation wallet) have sold $400 million in tokens throughout this run-up,” Light stated.

SUI foundation responds to the allegation

In a direct response to the allegations, the Sui Foundation stated that no insiders, including employees of the Foundation, Mysten Labs , or Mysten Labs investors, have sold $400 million worth of tokens during the recent price surge.

The Foundation emphasized that insiders have not engaged in any preemptive selling or violation of lockups and circulating supply schedules.

Following an allegation of “Sui insiders selling $400M in tokens throughout this run-up,” Sui Foundation would like to respond directly to this individual:

1. No insiders, neither employees of the Foundation or Mysten Labs (including Mysten Labs founders), nor ML investors,…

— Sui (@SuiNetwork) October 14, 2024

The Foundation also addressed the wallet in question. They suggested that it likely belongs to an infrastructure partner who owns tokens under a lockup schedule.

They assured that all token lockups are enforced by qualified custodians and continuously monitored by the Sui Foundation with the partner in compliance with the agreed terms.

“While the poster did not provide the wallet address, we believe the likely owner of the wallet is an infrastructure partner who owns tokens under a lockup schedule,” the SUI Foundation said.

SUI hits new ATH

This clarification comes as SUI reaches a new all-time high of $2.35 on October 13, 2024. The token has seen an impressive surge, with gains exceeding 100% in the last 30 days alone.

Despite the Foundation’s reassurances, the cryptocurrency community continues debating. Light argued that SUI’s current market capitalization may not be justified by its demonstrated potential.

SUI’s surge has raised it as the 22nd largest crypto as its market cap hit $6.1 billion. According to CoinGecko, SUI has surged by over 440% in the last year. In the last seven days alone, the coin has spiked by over 6%.